India rejects Trump’s demand to halt Russian oil imports
Photo: Indian Finance Minister Nirmala Sitharaman (Getty Images)
India will continue to purchase Russian oil despite the 50% US tariffs on Indian companies. This is beneficial, according to Indian Finance Minister Nirmala Sitharaman.
"Where we buy our oil from, especially a big-ticket foreign exchange item where we pay so much, highest in terms of import, we will have to take a call on what suits us best. We will undoubtedly be buying," Sitharaman said in an interview with News18.
Thus, New Delhi intends to ignore US President Donald Trump's demands to stop such supplies.
Economic benefits for New Delhi
The Minister's comments came amid India's continued purchases of Russian oil. The country's authorities emphasize that they will continue to buy raw materials as long as it remains financially profitable.
India has become the largest buyer of Russian oil supplied by sea. Thanks to discounts on Russian oil, which the West avoids, India has been able to reduce its import costs by financing the war against Ukraine.
US reaction and new tariffs
This move has angered the Trump administration. The US has raised tariffs on India to 50%, one of the highest rates in the world.
In addition, Trump has once again lashed out at India and Russia. He accused them of strengthening ties with China despite international pressure.
"Looks like we've lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!," he wrote.
Meeting in China
Indian Prime Minister Narendra Modi and Vladimir Putin met with Chinese President Xi Jinping. The talks took place at the Shanghai Cooperation Organization summit in Tianjin this week.
They discussed cooperation in the fields of energy and security. According to sources, the parties intend to expand cooperation in strategically important areas.
Trade during war
Russia covers about 40% of India's oil needs, making the country the largest buyer of Russian seaborne oil. Before the war, the share was less than 1%. China and Turkey also remain major customers.
White House trade adviser Peter Navarro said India has become a hub for processing cheap Russian oil. Companies buy oil at a significant discount, refine it, and export the fuel to Europe, Africa, and Asia. The proceeds go to politically connected energy oligarchs and then to Putin's military budget.
